Last checked at 
(Adds HSBC statement, CEO)
NEW DELHI, Dec 23 (Reuters) - HSBC's Indian asset
management unit is buying the mutual fund arm of India's L&T
Finance Holdings for $425 million to strengthen its
local operations, the bank said on Thursday.
HSBC intends to merge L&T Investment Management Limited
(LTIM) with HSBC Asset Management (India) Private Ltd, its
existing $1.6 billion asset management business in India, HSBC
and L&T said in separate statements.
"Combining LTIM with our existing Indian asset management
business gives us the scale, reach and capabilities to capture
some of the 15-20% annual asset management market growth
expected in India over the next five years," HSBC CEO Noel Quinn
said.
Dinanath Dubhashi, managing director and CEO of L&T Finance
Holdings, said the HSBC deal was in line with L&T's aim of
"unlocking value" from its subsidiaries, adding this would help
it to strengthen its balance sheet for its lending business.
L&T Investment Management Limited has assets under
management of over 800 billion Indian rupees ($10.65 billion)
and offers a basket of equity, fixed income and hybrid schemes
to both retail and institutional investors.
J.P. Morgan and Citi were the financial advisers to L&T.
($1 = 75.1020 Indian rupees)
(Reporting by Aftab Ahmed in New Delhi and Carolyn Cohn in
London
Editing by Alexander Smith and Mark Potter)
